US VeraSun prepares for bankruptcy - reports

31 October 2008 21:54  [Source: ICIS news]

HOUSTON (ICIS news)--US ethanol producer VeraSun Energy is preparing to file for bankruptcy, media reports said on Friday.

VeraSun has lined up $250m (€193m) in financing for a pre-packaged bankruptcy, reported Reuters, which cited an article from the Wall Street Journal.

VeraSun Energy was not immediately available for comment.

Earlier, VeraSun said it had made bad bets on corn prices, a feedstock for ethanol. Since then, it has retained Morgan Stanley to evaluate so-called "strategic alternatives".

VeraSun stock traded on Friday at 48 cents on the New York Stock Exchange, down 15.79%.

($1 = €0.77)

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By: Al Greenwood
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